Wealth Management
Advisors evaluating a new firm should ask key questions to determine if it aligns with their long-term goals and client needs.
- First, understanding who owns the firm reveals its revenue structure, potential proprietary product requirements, and overall objectivity.
- Second, clarifying who owns the book of business is crucial, as it impacts client retention and succession planning in the event of a departure.
- Third, identifying the firm’s clearing firm or custodian helps advisors assess whether transitioning will be smooth or require significant operational changes.
Staying with a familiar platform can simplify the move, while switching may present challenges.
Finsum: By addressing these questions upfront, advisors can make informed decisions about their professional future.
DC plan sponsors must balance the need for steady lifetime income with participants’ desire to retain asset control. According to recent survey data, many individuals want guaranteed income but are reluctant to lock away their savings, making flexible solutions essential.
A guaranteed lifetime withdrawal benefit (GLWB) offers income security while allowing participants to maintain access to their funds, unlike traditional annuities that require upfront asset surrender.
While single premium immediate annuities (SPIAs) and qualified longevity annuity contracts (QLACs) provide reliable payouts, they often limit liquidity and growth potential. Self-insuring through investment withdrawals may work for those with substantial outside income but poses risks for the average retiree.
Finsum: Offering adaptable income solutions like the GLWB allows plan sponsors to support a wider range of participants without sacrificing financial stability.
Corporate Insight (CI) has released its latest Asset Management Monitor – Advisor report, analyzing portfolio construction tools from top asset management firms. The report highlights BlackRock and J.P. Morgan as industry leaders, with both earning Excellent ratings for their comprehensive and user-friendly portfolio analysis tools.
Key features that set these tools apart include flexible input options, advanced data visualizations, and the ability to customize client reports. J.P. Morgan stands out for allowing advisors to integrate investment objectives, a capability the report suggests other firms should adopt.
Data visualization remains a crucial factor, with 81% of surveyed advisors emphasizing its importance, and firms like Franklin Templeton and Vanguard excelling in this area. Firms can enhance their tools by improving visualization features, integrating investment objectives, and offering more customization for client-facing reports.
Finsum: Visualization is a great way to demonstrate to clients and help them understand the intricacies and information you are presenting.
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Higher income returns supported strong bond market performance in 2024, with lower-quality credit outperforming amid favorable economic conditions. The 2025 outlook for fixed income remains positive, as real interest rates are expected to stay above inflation, offering attractive yields and portfolio diversification benefits.
While monetary easing is likely to continue, it will proceed at a slower pace, and policy uncertainties—such as trade, immigration, and fiscal decisions—could introduce market volatility.
Given these dynamics, a tactical approach to rates and credit strategies is recommended, with a preference for sectors that have lagged in spread tightening. Municipal bonds remain compelling for high earners, offering tax-equivalent yields above most taxable sectors.
Finsum: Disciplined risk management and active security selection can help investors navigate an evolving fixed-income landscape.
With upcoming tax changes in 2026, now is an opportune time to explore strategies for maximizing tax alpha in investment portfolios, and here are four strategies recommended by JPMorgan:
- One key approach is asset location optimization, ensuring tax-inefficient investments are placed in tax-advantaged accounts like IRAs or 401(k)s, while assets benefiting from long-term capital gains are held in taxable accounts.
- Tax-aware trading—including active tax-loss harvesting and tax-efficient portfolio transitions—can further enhance after-tax returns.
- Charitable giving strategies, such as donating appreciated securities to donor-advised funds or making qualified charitable distributions from IRAs, offer additional tax benefits.
- Wealth transfer techniques, like grantor retained annuity trusts (GRATs), can help pass on assets with minimal tax implications.
Finsum: Using a line of credit can provide liquidity without forcing premature, tax-inefficient asset sales.
Small-cap stocks, typically valued between $250 million and $2 billion, are regaining popularity among investors after years of underperformance. Economic growth plays a significant role in this resurgence, as smaller firms tend to benefit more from increased consumer and business spending.
Additionally, the Federal Reserve's recent rate cuts are expected to lower borrowing costs, a crucial factor for small businesses that rely heavily on credit. Another driver of renewed interest is valuation—many analysts believe small caps are undervalued compared to their larger counterparts.
For investors seeking exposure while mitigating risk, small-cap ETFs like Vanguard Small-Cap Growth ETF (VBK), iShares Morningstar Small-Cap Growth ETF (ISCG), and Invesco S&P SmallCap Momentum ETF (XSMO) offer diversification and professional management.
Finsum: With economic growth in recent quarters, small caps may continue to gain traction in the coming years.